Analyzing the Determinants of Foreign Direct Investment Flows into Nigeria

Abstract

This article analyzes the key determinants influencing Foreign Direct Investment (FDI) flows into Nigeria, a critical aspect of the country's economic development strategy. It examines various factors such as economic stability, political climate, regulatory environment, infrastructure quality, and market size that impact investor decisions. Utilizing econometric models and data from recent years, the study identifies significant drivers of FDI, including natural resource availability and government policies aimed at attracting investment. The research also highlights the challenges Nigeria faces, such as corruption, insecurity, and inadequate infrastructure, which deter potential investors. The findings provide valuable insights for policymakers seeking to enhance Nigeria's attractiveness as an investment destination and promote sustainable economic growth through increased FDI.